GST Migration Not Taxpayer's Burden: Delhi HC Directs CESTAT To Hear Appeal After Pre-Deposit Was Made Under Excise Head Due To Portal Failure

The Delhi High Court has held that where the Service Tax portal had become non-functional after the migration to the GST regime, the taxpayer cannot be compelled to make the mandatory pre-deposit strictly under the Service Tax ledger for maintainability of an appeal. The Court observed that once the deposit has already gone to the Government exchequer under the Excise Head. A Division Bench comprising Justice Prathiba M. Singh and Justice Saurabh Banerjee was hearing a writ petition filed by Navin Road Lines, challenging the order passed by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) refusing to entertain the Service Tax appeal on the ground that the mandatory pre-deposit was not made under the Service Tax head, even though the assessee had already deposited ₹1,49,190 under the Excise category. The assessee, Navin Road Lines had preferred an appeal before the CESTAT, but the Registry marked a defect stating that the mandatory pre-deposit was not traceable under the Service Tax head. The assessee argued that the Service Tax portal had become non-functional post-GST migration, and accordingly, the amount was deposited under the Excise ledger. However, the CESTAT refused to entertain the appeal of the asessee on the ground of defect in payment of pre-deposit. The assessee preferred a writ petition before the High Court challenging the order of CESTAT. The Bench observed that the very same issue had recently been addressed in J.M.D. Enterprises v. CESTAT, New Delhi, W.P.(C) 17236/2025, wherein deposits made under the Excise head were directed to be treated as valid pre-deposits to maintain Service Tax appeals because the Service Tax portal was non-functional. The Court reiterated that the deposit may be made under the Central Excise head as the Petitioner had no other option as the service tax portal is non-functional. Hence, it cannot be said that the pre-deposit has to be made again. Pre-deposit having been made, ultimately the amount goes to the exchequer. The Bench held that once the assessee had already deposited the pre-deposit amount with the Government under the Excise head, the defect in the CESTAT appeal stood automatically cured. Accordingly, the High Court directed that the pre-deposit made under the Excise ledger shall be treated as valid pre-deposit for the purpose of the pending Service Tax appeal. In view of the above, the Bench allowed the appeal in the favour of assessee. Case Title: Navin Road Lines Vs. Assistant Registrar Customs Excise and Service Tax Appellate TribunalCitation: 2025 LiveLaw (Del) 1604 Case No: W.P(C) No. 5464/2025 Appearance for Petitioner: Mr. Ruchir Bhatia & Mr. Abhishek Anand, Advs Appearance for Respondent: Mr. Aditya Singla, SSC, CBIC with Ms. Arya Suresh, Adv. Click Here To Read/Download Order

GST Migration Not Taxpayer's Burden: Delhi HC Directs CESTAT To Hear Appeal After Pre-Deposit Was Made Under Excise Head Due To Portal Failure

Rajnandini Dutta

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